The Department of Labor has concluded an unprecedented short and significantly flawed rulemaking process, resulting in a final rule that will harm retirement security for millions of middle-class Americans. Studies have shown the 2016 fiduciary rule, previously promulgated by the Department of Labor, eliminated access to retirement guidance for over 10 million account holders and $900 billion in retirement assets. Thankfully, that rule was struck down in court, but rather than learning from that experience, the Department has promulgated a similarly problematic and flawed rule.

Throughout the rulemaking “process,” the Department of Labor demonstrated a fundamental misunderstanding of the products and marketplace it seeks to regulate. The Department of Labor ignored the existing laws in 45 states that have adopted the National Association of Insurance Commissioners (NAIC) Model Regulation on annuity transactions, which provides robust consumer protections and requires insurance agents to act in the best interest of consumers. The NAIC Model was developed over the years through an open and deliberative process involving all stakeholders. In contrast, the Department of Labor rushed its fiduciary rule in a historically short 60-day comment period over the holiday season, and the Biden Administration has shown a disinterest in receiving stakeholder feedback, even canceling scheduled meetings with interested parties before finalization of the rule. The final rule reflects a rushed and one-sided process. The Department of Labor has promulgated an unworkable rule that will eliminate retirement savings options for millions of middle-class working and retired Americans.

About the IALC: The Indexed Annuity Leadership Council (IALC) was formed in 2011 with a commitment to providing complete and factual information about the use of indexed annuities as a part of any balanced financial plan. We are a consortium of life insurance organizations.